The satellite communication market in the defense sector is expected to register a CAGR of over 6.90% during 2018 - 2023 (the forecast period).

The scope of the report covers various segments of the market. Based on type, the market is segmented into mobile satellite services (MSS), very small aperture terminal (VSAT), surveillance and tracking, detectors. By end-user industry, the market is divided into naval forces, coastal security services, merchant navy, and government. While the region considered include North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America.

Growing Focus on Defense Applications

As geopolitical power shifts from the Atlantic to the Indian Ocean, policy makers are putting more emphasis on advanced sea lines of communications, to ensure smoother sail of ships and vessels. Non-traditional seaborne threats, such as gun-running, maritime terrorism, piracy, and drug trafficking, have grown, exponentially. To tackle these attacks, there is a need for secure and efficient communication infrastructure, which, in turn, is boosting the maritime satellite communication market. Maritime security is important for any country as it is linked to a nation’s economic development. Sea lines of communication always play an important role in developing an economy, as the majority of trade is led by sea activities.

Mobile Satellite Services to lead the Market Growth

The mobile satellites services consist of earth stations, such as ship earth station (SES), communication earth station (CES), and mobile earth station (MES). Owing to the wide area network coverage, these services are mainly used in military ships and shipyards. These services include Telex, data for distress, safety alerts, and messaging provision for maritime security. Currently, MSS systems are undergoing a transition from the traditional approach of production to a more pragmatic and technologically advanced approach, which ensures miniaturization and enhanced capabilities. This transition is boosting the market for mobile satellite services in the maritime satellite communication market.

North America to hold the Largest Market Share

The North American market is growing, due to the rising R&D activities and industrialization. In the past three decades, strategic and tactical missions were primarily dependent on the military satellite communications (MILSATCOM). The US and other armed forces are making efforts to own uninterrupted, high capacity, and reliable communications. These factors have always been the main concerns for every military commander, and especially in the United States. The North American naval structure is built on the basis of Mahan naval doctrine, where controlling the sea lines of communication is expected to place any country in a dominating global power. To achieve this global hegemony, the region requires effective communication with all its ships and units, mainly military assets, anywhere in SLOC, which, in turn, boosts the North American maritime satellite communication market.

Key Developments in the Market

May 2018 – The UK defense secretary, Gavin Williamson launched the country’s first space defense strategy with a warning that space-based threats are evolving. The UK’s first space defense strategy aims to significantly boost the sector, in response to threats to the country’s critical infrastructure. Ultimately, the United Kingdom seeks to increase the number of personnel working in space defense by 20% over the next five years, which would take the total number of people employed in the sector to over 600.